Bobcat Inc. provides you with the following information about firm's cost of capital. Find WACC - Tax rate =21%. - 8-year, 5\% coupon, semiannual payment non-callable bonds sell for $998. New bonds will be privately placed with no flotation cost with S1,000 par value. - 9% annual dividend, $100 par value, perpetual preferred stock sells for $99. - The firm plans to issue new common stock with the flotation cost of 5%. Common stock currently sells for $120. D0=$8.2 and g=4% - Target capital structure: 35% debt, 15% preferred, 50% common equity